New car (mps) and finance thoughts
Discussion
Hello all. Sorry this is brief as on iPod.
Have the opportunity to purchase a one month old Mazda 3 mps. It will however be on a three year finance deal. I've never taken finance out on a vehicle before so I was wondering if anyone could give me their thoughts on this. Are the finance companies fussy when you return the car if there are stone chips etc on it? Is a rate of 6.9 percent good?
I'll be using my current Mazda 3 sport as the deposit. Is the mps a good buy? Drove it this morning and fell in love with it. Would be my first proper performance car. The only drawback would be that it will be parked on the street down the road. Are they a target for thieves?
The mps in question is a white demo car and is valued at just under 19k. Does anyone else on here own one?
Thanks all.
Edited to add. Just working on the monthly figure but it is affordable for me.
Have the opportunity to purchase a one month old Mazda 3 mps. It will however be on a three year finance deal. I've never taken finance out on a vehicle before so I was wondering if anyone could give me their thoughts on this. Are the finance companies fussy when you return the car if there are stone chips etc on it? Is a rate of 6.9 percent good?
I'll be using my current Mazda 3 sport as the deposit. Is the mps a good buy? Drove it this morning and fell in love with it. Would be my first proper performance car. The only drawback would be that it will be parked on the street down the road. Are they a target for thieves?
The mps in question is a white demo car and is valued at just under 19k. Does anyone else on here own one?
Thanks all.
Edited to add. Just working on the monthly figure but it is affordable for me.
I'd look at a year old one and save yourself a lot of money. Finance is pretty simple. They will require you to have it serviced to schedule (remember you can take it to any VAT reg place, but you may well get servicing thrown in as part of the finance). Basically you should keep it up to condition with your agreed mileage. For example if you put 60k on it then stone chips and a bit of curbing to the wheels would be acceptable as this would likely be the condition of a three year old 60k car if you went to buy it.
You will want to know if you can walk away handing the car back with no penalties to pay after you've paid off 50% of the deal. This gives you some degree of flexibility.
Finally you may have baloon figure. This is the final value of the car, likely a lot lower than you'd expect the car to be worth. At the end of the 3 years you'll be given the option of handing the car back or paying that final figure and owning the car out right. The trick is that Mazda would say your final figure is £5,000 but the car would be worth something like 7k. You can then be invited by the lovely salesman to part ex that car for a new Madza and they'll use that difference to get your into a new car for a discount...on finance again...where you pay 10% APR and really save nothing. It's just a way of fishing you in to keep you in their pocket.
I've found that a 20k car will be around £420 a month, £15k around 300 a month but it depends on what you want to pay over what period. If you're not putting lots of miles on it there is a lot to be said for pocketing that money for a year and buying a lovely shed in true PH tradition
You will want to know if you can walk away handing the car back with no penalties to pay after you've paid off 50% of the deal. This gives you some degree of flexibility.
Finally you may have baloon figure. This is the final value of the car, likely a lot lower than you'd expect the car to be worth. At the end of the 3 years you'll be given the option of handing the car back or paying that final figure and owning the car out right. The trick is that Mazda would say your final figure is £5,000 but the car would be worth something like 7k. You can then be invited by the lovely salesman to part ex that car for a new Madza and they'll use that difference to get your into a new car for a discount...on finance again...where you pay 10% APR and really save nothing. It's just a way of fishing you in to keep you in their pocket.
I've found that a 20k car will be around £420 a month, £15k around 300 a month but it depends on what you want to pay over what period. If you're not putting lots of miles on it there is a lot to be said for pocketing that money for a year and buying a lovely shed in true PH tradition
Edited by Ved on Friday 30th December 21:34
Ved said:
Finally you may have baloon figure. This is the final value of the car, likely a lot lower than you'd expect the car to be worth. At the end of the 3 years you'll be given the option of handing the car back or paying that final figure and owning the car out right. The trick is that Mazda would say your final figure is £5,000 but the car would be worth something like 7k. You can then be invited by the lovely salesman to part ex that car for a new Madza and they'll use that difference to get your into a new car for a discount...on finance again...where you pay 10% APR and really save nothing. It's just a way of fishing you in to keep you in their pocket.
As for the car, it will suit your needs as its quick and underrated so unlikely to be stolen. My only question mark would be over the fact its front wheel drive, but as a daily driver thats not too bad an issue.
6.9% APR is good (6.9% flat rate is a bit high) you dont say which it is.
Gap insurance is good, but dont pay more than 350 for it. Paint protection is your choice, i wouldnt.
Thanks for the info bed.
Year old ones are indeed a few thousand cheaper. One of the reasons why I like the one I' drove is because it will have a full manufacturer warranty for nearly the term of the finance.
I'll take a look at some earlier models and see what the prices come up as.
Thanks again for the info. Most helpful.
Year old ones are indeed a few thousand cheaper. One of the reasons why I like the one I' drove is because it will have a full manufacturer warranty for nearly the term of the finance.
I'll take a look at some earlier models and see what the prices come up as.
Thanks again for the info. Most helpful.
xkrGiles said:
Im sorry but I suspect Mazda are as clean as the others. Generally now a PCP finance product will give you built in equity for your next deal, so trade in for 7000 and owe 5000, you get the 2000 as equity into your next car at any garage. Most balloons are based on 10-20% below the predicted glasses guide figure, so you dont have to fork out a new deposit every time.
As for the car, it will suit your needs as its quick and underrated so unlikely to be stolen. My only question mark would be over the fact its front wheel drive, but as a daily driver thats not too bad an issue.
6.9% APR is good (6.9% flat rate is a bit high) you dont say which it is.
Gap insurance is good, but dont pay more than 350 for it. Paint protection is your choice, i wouldnt.
Thanks xkr. Thinking of going back to the garage in the morning to get more details. Will want to know the full ins and outs before taking it on. The finance percent simply says 6.9% apr on my quote.As for the car, it will suit your needs as its quick and underrated so unlikely to be stolen. My only question mark would be over the fact its front wheel drive, but as a daily driver thats not too bad an issue.
6.9% APR is good (6.9% flat rate is a bit high) you dont say which it is.
Gap insurance is good, but dont pay more than 350 for it. Paint protection is your choice, i wouldnt.
7% is a reasonable apr
on pcp they will accept normal wear and tear when the car goes back, so stone chips are normally fine, dents and big scratches they normally charge for
id be careful with buying a mazda thou especially the mps, they suffer from massive depreciation in the first 12 months, dealer offered me a 1 yo one with 10k on it for 40% under retail
on pcp they will accept normal wear and tear when the car goes back, so stone chips are normally fine, dents and big scratches they normally charge for
id be careful with buying a mazda thou especially the mps, they suffer from massive depreciation in the first 12 months, dealer offered me a 1 yo one with 10k on it for 40% under retail
I'd be worried about not wanting to keep the car for the full term if your situation changes with regards to mileage (and it becomes expensive to run) or employment.
Given the potential depreciation of an almost new MPS you will be stuck owing more than the car is worth for most if not all of the finance agreement.
Given the potential depreciation of an almost new MPS you will be stuck owing more than the car is worth for most if not all of the finance agreement.
All good points thanks.
I'm seeing 11 plate ones for around 2k less, and older ones down to 13k. I suppose depreciation is an issue on these cars as this one has dropped 5k in a month!
I know circumstances can change in 3 years, but anything could happen. My current car could blow up tomorrow and i'd be left with nothing. As mentioned above, this one will be covered for 2yrs 11mnths by warranty which should cover most things.
Oh well. I'm sleeping on it before I make any decisions and I need to work on the deal more.
Thanks again.
I'm seeing 11 plate ones for around 2k less, and older ones down to 13k. I suppose depreciation is an issue on these cars as this one has dropped 5k in a month!
I know circumstances can change in 3 years, but anything could happen. My current car could blow up tomorrow and i'd be left with nothing. As mentioned above, this one will be covered for 2yrs 11mnths by warranty which should cover most things.
Oh well. I'm sleeping on it before I make any decisions and I need to work on the deal more.
Thanks again.
funkyrobot said:
Cheapest 2011 one I can find is £16195 and has 11k on the clock. 2010 models are around 13995 to 15995.
tells me that you're going to have a £2k depreciation in the first year.would having a 2011 plate mean that much to you? I know very little about the MPS, but isn't it just the same. so if you got a very low mileage older one, surely that would be preferable.
(I don't trust cars sold so quickly. IMO selling a car on within a year is strange!)
Efbe said:
tells me that you're going to have a £2k depreciation in the first year.
would having a 2011 plate mean that much to you? I know very little about the MPS, but isn't it just the same. so if you got a very low mileage older one, surely that would be preferable.
(I don't trust cars sold so quickly. IMO selling a car on within a year is strange!)
The car I'm looking at is a demonstrator and is the only one in stock at that garage.would having a 2011 plate mean that much to you? I know very little about the MPS, but isn't it just the same. so if you got a very low mileage older one, surely that would be preferable.
(I don't trust cars sold so quickly. IMO selling a car on within a year is strange!)
An 11 plate would be nice, but it may be fruitful to look at an older one like you say. The thing that makes the one I'm looking at so attractive is the warranty.
I don't seem to have much luck with cars so I like the piece of mind I get with a warranty. It's not for everyone but it's something I like to have with a vehicle.
Efbe said:
tells me that you're going to have a £2k depreciation in the first year.
would having a 2011 plate mean that much to you? I know very little about the MPS, but isn't it just the same. so if you got a very low mileage older one, surely that would be preferable.
(I don't trust cars sold so quickly. IMO selling a car on within a year is strange!)
You make out like £2k depreciation in the first year is a bad thing? Unless it's a bargain bin £6k shopping box, it is likely to lose £2k+ in year 1.would having a 2011 plate mean that much to you? I know very little about the MPS, but isn't it just the same. so if you got a very low mileage older one, surely that would be preferable.
(I don't trust cars sold so quickly. IMO selling a car on within a year is strange!)
OP - the only thing that puts me off is you saying it's parked down the street. Unfortunately car thieves will know exactly what it is and it will draw their attention.
frosted said:
You must really want that warranty, with the 7k you would save in depreciation you could rebuild your car a few times . It's a lot of money
Thinking about it, an early 2011 model would be nice. Have spotted a low mileage one for around 16k so that may be the one to go for.
I don't want to dip into 2010 models.
66comanche said:
You make out like £2k depreciation in the first year is a bad thing? Unless it's a bargain bin £6k shopping box, it is likely to lose £2k+ in year 1.
OP - the only thing that puts me off is you saying it's parked down the street. Unfortunately car thieves will know exactly what it is and it will draw their attention.
I did wonder about that. Saying that, a lot of houses around here have open driveways so it wouldn't make much difference to be off the road. A chap around the corner owns one and it's still there. OP - the only thing that puts me off is you saying it's parked down the street. Unfortunately car thieves will know exactly what it is and it will draw their attention.
funkyrobot said:
frosted said:
You must really want that warranty, with the 7k you would save in depreciation you could rebuild your car a few times . It's a lot of money
Thinking about it, an early 2011 model would be nice. Have spotted a low mileage one for around 16k so that may be the one to go for.
I don't want to dip into 2010 models.
but why not 2010 models? nothing wrong with it, but is there another reason for this?
Efbe said:
I do see the warranty.
but why not 2010 models? nothing wrong with it, but is there another reason for this?
I just fancy something at most a year old. I've never had the opportunity to own something so new before so it's just, well, a novelty really but why not 2010 models? nothing wrong with it, but is there another reason for this?
.The one I looked at today is so young it's practically new. It had a lovely new car smell to it
funkyrobot said:
I just fancy something at most a year old. I've never had the opportunity to own something so new before so it's just, well, a novelty really .
The one I looked at today is so young it's practically new. It had a lovely new car smell to it
fair enough. though I wouldn't do it myself .The one I looked at today is so young it's practically new. It had a lovely new car smell to it
a bloke at work has one, and it's bloody nice!
funkyrobot said:
I just fancy something at most a year old. I've never had the opportunity to own something so new before so it's just, well, a novelty really .
The one I looked at today is so young it's practically new. It had a lovely new car smell to it
Hey it's your money we can't tell you what to buy , tbh most on here would get a MPS at 2-3 years old and not care about the new car smell . .The one I looked at today is so young it's practically new. It had a lovely new car smell to it
Even a 3 year old car can loose 2k a year in depreciation
Efbe said:
funkyrobot said:
I just fancy something at most a year old. I've never had the opportunity to own something so new before so it's just, well, a novelty really .
The one I looked at today is so young it's practically new. It had a lovely new car smell to it
fair enough. though I wouldn't do it myself .The one I looked at today is so young it's practically new. It had a lovely new car smell to it
a bloke at work has one, and it's bloody nice!
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